In the past 24 hours, altcoins have seen the biggest decline, with LTC dropping to $86.5 at one point. In fact, as of this writing, the price of Litecoin has rebounded to $96, having risen slightly by 4.72% in the last 24 hours.
Despite the recent decline in LTC prices, long-term holders of LTC remain optimistic and expect further increases.
78% of Litecoin long-term addresses remain bullish.
78% of Litecoin addresses have held LTC for over a year. These addresses consistently accumulated during the bear market and sold near price peaks.
Although there was an increase in long-term stock sell-offs in previous cycles, this cycle is different.
In this cycle, long-term holdings of LTC have slightly declined. However, this decline is not significant compared to previous cycles, indicating that fewer long-term holders are selling LTC compared to earlier bull markets.
As a result, many holders expect prices to rise further as they await the peak of the current cycle, indicating a positive outlook among long-term holders.
Litecoin repeats the pattern after the 2020 election.
Analyzing the price trend of LTC/USD in 2020 and recent data from 2024 reveals interesting similarities, further supporting LTH.
Both periods experienced significant volatility before and after the U.S. elections, accompanied by sharp price increases.
At the end of 2020, the price of Litecoin rose from around $60, reaching a peak of over $160 in early 2021.
The pattern in the fourth quarter of 2024 is similar to the post-election rapid price increase pattern, indicating further price appreciation potential.
Historically, these election-related rebounds have seen significant increases during the New Year period. If the current pattern holds, Litecoin may break the $200 mark in early 2025.
As 2024 comes to a close, strong buy signals and increased trading volume are reminiscent of 2020.
This not only indicates the cyclicality of Litecoin but also reflects the impact of broader market sentiment during the election period.
This indicates that Litecoin may be poised for another upward move, as seen previously.
What does the LTC chart suggest?
Finally, in the past 12 days, sellers have dominated the market. The continuous decline in the relative strength index confirms the dominance of sellers. The RSI fell from 71 to 40, nearing the oversold territory.
In summary, while long-term holders are optimistic, retail traders are not. Therefore, the market is experiencing short-term negative sentiment. If this sentiment persists, LTC could drop to $91.47.
However, if the bullish sentiment of long-term holders spreads throughout the market, LTC will reclaim the $140 level.
